Lesson Plan Originally Created By:
Susan Morris
The Bank Statement
Part of Unit: Accounting Cycle for a Service Business/Sole Proprietorship
Lesson Plan Overview / Details
Students will be able to apply what they learn from the bank statement of a small business to balancing their own checkbook from their bank statement. As one of the last items learned in the completed accounting cycle, students will begin to see how expenses affect a business.
Lesson Time
- Classroom
- 1 Class Period
Standards
California Career and Technical Education Standards
- FB.A.A1.2 Examine, analyze, and categorize financial transactions.
- FB.A.A1.4 Prepare, analyze, and interpret financial statements for various businessentities.
- FB.A.A2.5 Use basic concepts of financial analysis to interpret financial statements.
California Academic Content Standards (Reinforced)
- ELA.9-10.R.SFIM.2.1 Analyze the structure and format of functional workplace documents, including th...
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Student Objectives / Goals
- Students will be able to identify outstanding checks and deposits when comparing the bank statement to the check book.
- Students will be able to record service fees in the general journal and post to the appropriate ledger accounts.
- Students will be able to compare a completed reconciliation statement to the Cash ledger to prove the ledger.
Activities in this Lesson
- Bell Activity - Hooks / Set
Write the following question on the board:
Why do you think it is important to regularly compare the Cash in Bank ledger balance with the checkbook balance?
In pairs, have students write their answers on the board. After all pairs have written a response, discuss the answers. Point out answers that are on track, question answers that are too vague or don't quite cover the material - Have students explain their responses.
Teacher led part should include covering this information:
1. Part of internal cash control - keeping track of cash flow
2. Checking for errors (mostly in the checkbook)
Most common errors are:
- transposition errors - incorrectly writing the balance forward on the next check stub.
- addition/ subtraction errors
- failure to record a check or deposit or finance charge
3. Check balances before reconciling bank statement
- Vocabulary (optional activity) - Other
As an optional activity: Write the list of key terms on the board. Vocabulary is also included in teaching Power Point. Have students write their own definition to the words if they are unable to define it, have them write an example.
Key Terms:
Bank Statement Canceled Checks
Reconciling the Bank Statement Outstanding Checks
Outstanding Deposits Bank Service Charge
Stop Payment Order NSF Check
Electronic Funds Transfer System (EFTS)
- Reconciling the Bank Account - Lecture
The teaching Power Point includes all the major sections in order for students to be able to look at a bank statement, understand the parts, and fill out the worksheet to balance the checkbook with the ledger and to be able to record any bank fees.
The Power Point shows specifically how to fill out the form by hand. Included in the self practice is an electronic version as well, using Excel.
- Bank Reconciliation.pptx [ Download ] Lecture materials
- Class Practice - Guided Practice
The attached document is in Word2007. There is a practice form and 2 problem sets. The document can be used as a handout for students to fill out individually under guidance or can be shown on an overhead for class discussion on filling out form.
- Bank Worksheet.docx [ Download ] Reconciliation worksheet w/ General Journal and Ledger form
- On Your Own - Independent Practice
1. The Word document has the entire assignment to be done by hand.
2. The attached Excel file can be used for students to fill out the bank reconciliation electronically.
- Form can be adapted for use with any bank statement assignment.
- If more blanks are needed to list checks they are easily inserted - click on row number ABOVE the last check row, right click, select insert row.
- Any information listed on form that has a zero balance -students are to fill in with a 0.
- Quiz - Assessment
Attached is a short quiz over the Bank Statement. It can be shown on an overhead and the students write down the answers only or can be passed out individually.
- Bank Reconciliation Quiz.docx [ Download ] Short Quiz
